Correlation Between Nigerian Stock and JULIUS BERGER
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nigerian Stock Exchange and JULIUS BERGER NIGERIA, you can compare the effects of market volatilities on Nigerian Stock and JULIUS BERGER and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Nigerian Stock with a short position of JULIUS BERGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nigerian Stock and JULIUS BERGER.
Diversification Opportunities for Nigerian Stock and JULIUS BERGER
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nigerian and JULIUS is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Nigerian Stock Exchange and JULIUS BERGER NIGERIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JULIUS BERGER NIGERIA and Nigerian Stock is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Nigerian Stock Exchange are associated (or correlated) with JULIUS BERGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JULIUS BERGER NIGERIA has no effect on the direction of Nigerian Stock i.e., Nigerian Stock and JULIUS BERGER go up and down completely randomly.
Pair Corralation between Nigerian Stock and JULIUS BERGER
Assuming the 90 days trading horizon Nigerian Stock is expected to generate 26.01 times less return on investment than JULIUS BERGER. But when comparing it to its historical volatility, Nigerian Stock Exchange is 7.85 times less risky than JULIUS BERGER. It trades about 0.04 of its potential returns per unit of risk. JULIUS BERGER NIGERIA is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 9,800 in JULIUS BERGER NIGERIA on September 23, 2024 and sell it today you would earn a total of 5,725 from holding JULIUS BERGER NIGERIA or generate 58.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nigerian Stock Exchange vs. JULIUS BERGER NIGERIA
Performance |
| Timeline |
Nigerian Stock and JULIUS BERGER Volatility Contrast
Predicted Return Density |
| Returns |
Nigerian Stock Exchange
Pair trading matchups for Nigerian Stock
JULIUS BERGER NIGERIA
Pair trading matchups for JULIUS BERGER
Pair Trading with Nigerian Stock and JULIUS BERGER
The main advantage of trading using opposite Nigerian Stock and JULIUS BERGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nigerian Stock position performs unexpectedly, JULIUS BERGER can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in JULIUS BERGER will offset losses from the drop in JULIUS BERGER's long position.| Nigerian Stock vs. AFROMEDIA PLC | Nigerian Stock vs. FIDSON HEALTHCARE PLC | Nigerian Stock vs. TOTALENERGIES MARKETING NIGERIA | Nigerian Stock vs. UNITED BANK FOR |
| JULIUS BERGER vs. NIGERIAN BREWERIES PLC | JULIUS BERGER vs. UNITY BANK PLC | JULIUS BERGER vs. BUA FOODS PLC | JULIUS BERGER vs. CONSOLIDATED HALLMARK INSURANCE |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |